Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
: `! x5 x' p( ]5 i! z+ Y/ p( F: m7 [expect much from Crude Oil producers and future is not with the
  F5 X8 h% V2 }( b1 Rcompanies producing Jet fuels but Biofuels. Also no wonder if some of
$ x* r2 l2 ~4 _9 D  o. d  F% }these oil producer will go bankrupt or out of the business even if
crude prices improves. This implies also to good names such as Shell,
& W+ z6 l) ~) X; E; g4 n- UEXXON, BG, BP, Cheveron ....xyz.. oils

, _3 ?( F9 u$ x% @+ {- aRecently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
- K2 j, J  s) S, g- SA year ago these things would have spiked the price of crude oil by at
, G2 ~! J3 l1 c* ?6 s1 d6 V( Vleast $50.00 per barrel. Today, oil price declined by a record amount.
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! P* Z6 `& D2 X8 D/ ~- V
There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
/ D0 H0 k" x; K/ W3 }

. U, a: y- a7 g! ~1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
( I* A) I/ q" YArabia.


  o3 f; D* [2 X0 S! {0 U/ f  ?9 u+ F- @, N8 ~2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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  i/ X5 y# j8 h) l* [. ^
" F$ Y) r: w. `" X3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


0 K( E" l/ g: `- u' L. K( s4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
; F) ]) v6 a0 `! n) tpotential per acre in some cases is astounding. Many countries are
1 z4 B4 Q- N' [racing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
8 ~: Q( E# A; m% t1 Z1 r: _cattle, turkey and chicken processing plant will soon sell their fat
to bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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6. There are 99 nuclear reactors in various stages of planning and
- P  }. D) P$ P6 ^construction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.
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7. Every company in any form of transportaion business is replacing
+ J) S6 ~! k( folder equipment such as trucks, airplanes, train engines, ships, etc.
# c& ?5 d7 v$ d8 s5 ewith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.


9 E; N$ q5 G  Z7 PAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.

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3 x0 B) E+ L# y8 Z# a* r& _8. Cities and counties throughout the US are selling the rights to
- O! `+ {1 s3 M+ J2 qcapture methane gas from landfills. This is a huge source of gas
7 b6 Z  a# U/ c" C8 Z" ~# Navailable at very little cost or risk. The gas is displacing crude
* x3 r2 E: Q. `% {+ }0 V  doil.

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9. Coal is being transformed into a clean burning liquid fuel. The CO2
3 z# X$ y+ i4 L% vproduced as a byproduct is sold to oil companies for injection into
oil wells.


' t, u3 ^3 c  H7 q- H10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.
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' F3 a2 d4 D0 k( H3 i% a# z" TEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
5 p% f, S7 b* p; nto control oil prices.

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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
: m1 t$ B2 T4 bIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
' X* p0 p% L& i; ^8 z& H6 [3 M2009 ... FYI-Only